PESTLE analysis example

A Political, Economic, Sociological, Technological, Legal and Environmental (PESTLE) analysis is a method of assessing the business environment.

The six sections of the analysis create a framework you can use to review any strategies you have in place or to work out a new direction, product or plan for your business.

The example below shows the type of information you should include in a PESTLE analysis. It also includes fictional examples of a product for overseas sale.

Analysis factors Example Implications and importance
How certain factors may affect the business Time frame - eg:
0-6 months
6-12 months
12-24 months
Type - eg:
Positive
Negative
Unknown
Impact - eg:
Increasing
Unchanged
Decreasing
Unknown
Importance - eg:
Critical
Important
Unimportant
Unknown
Political - eg international trading policies eg - possible trade barriers to protect domestic suppliers Unknown Negative Increasing Unknown
Economic - eg current UK economical situation eg - strength of overseas economies versus UK may affect price/profitability 6-12 months (possibly longer) Unknown Unknown - dependent on the economy, and other countries' economies Important
Social - eg overseas attitudes and opinions to product eg - will product be accepted overseas? 6-12 months Unknown Unknown Critical
Technological - eg new technologies eg - can intellectual property rights be protected overseas 0-6 months Negative Unchanged Important
Legal eg - overseas product regulations 0-6 months Negative Unchanged Critical
Environmental - eg sustainability eg - pollution implications of transportation n/a Possibly negative Unknown Unknown